Quarterly report pursuant to Section 13 or 15(d)

Notes Payable, Disclosure

v3.8.0.1
Notes Payable, Disclosure
 6 Months Ended
Jun. 30, 2017
Notes  
Notes Payable, Disclosure

4.             NOTES PAYABLE:

 

Notes consisted of the following as of June 30, 2017

 

Principal

Balance

Interest

Rate

Accrued

Interest

Warrants

issued

Warrant

Fair Value

- Discount

Unamortized

Discount

Unsecured notes payable

$

420,000

12%

$

113,280

139,997

$

115,159

$

--

Secured notes payable

$

1,037,361

12% - 18%

$

379,381

--

$

--

$

--

Revolving line of credit

$

229,980

12% - 18%

$

73,869

--

$

--

$

--

$

1,687,341

$

566,530

139,997

$

115,159

$

--

 

Based upon the Company’s financial position, the Company does not believe it will be able to satisfy the mandatory principal payments in 2017.  The Company will work with the lenders to explore extension or conversion options.  There is no guarantee the lenders will accommodate our requests.  The Company is in default in regard to interest payments on the notes, the Company’s assets may be foreclosed upon.